New Delhi: Private equity (PE) investments, which ballooned to nearly $25 billion (Rs1 trillion) over the past four years, are likely to continue strongly through 2010, driven by robust economic growth and attractive market valuations, a report by global consulting firm Boston Analytics has said.
Around 903 PE investments worth $24.8 billion were made in India in 2004-2007, with more than 45 of them exceeding $100 million. In 2003, there were just 56 PE investments, with an average size of $8.4 million.
According to the report, titled Private Equity Landscape in India, demographic and economic factors spurred this rapid growth. It said the country’s current market situation and the dynamics of its economy are likely to result in continued growth through 2010.
The major attributes favouring India’s investment climate include rapid GDP growth, favourable demographics, as about half of the population is under the age of 25, and a high domestic savings rates.